An estimated 30 Scottish estate agencies are predicted to go bust this year - almost double last year’s tally, according to new figures.
However, the figure would still be the second lowest annual number for the last decade indicating the sector is in reasonably good health and faring better than the UK-wide picture.
Figures compiled by Edinburgh-based property management firm DJ Alexander’s Apropos arm found that 371 UK businesses in the sector, including 23 in Scotland, have entered formal insolvency proceedings in the first nine months of 2019. If the trend continues that would equate to 498 for the whole year including 30 for Scotland.
The figures for England and Wales would be the highest annual figure since 2014 when 522 real estate businesses went bust.
David Alexander, managing director of Apropos by DJ Alexander, said the figures highlighted the impact that a declining High Street coupled with a changing marketplace is having on the traditional estate agency sector.
“The problems faced by the High Street are impacting on all businesses regardless of sector as we can see from the recent closure of Thomas Cook, the problems facing Mothercare, and the numerous restaurant chains which have closed their doors over the last year. These are issues of long leases, high rents and rates and declining footfall.”
